Move Crypto From Robinhood To Wallet

Stock and crypto trading platform Robinhood wants to be more than a trading platform.

Long term, Robinhood wants its digital wallet to be the identify where “you manage all your coin,” CEO Vlad Tenev said in its third quarter earnings call on Wednesday (Nov. ii). That ways everything from direct depositing your paycheck to making the Robinhood debit card “people’southward main spending account” to investing for retirement — the latter thanks to the new IRA product it launched.

“Nosotros want Robinhood to be the highest value and best user feel tool for you to manage all of your money” including customers entire portfolio and unabridged wallet, he added. “The second affair is, we desire Robinhood to be the default choice for your beginning financial account. So that entails always being focused on the next generation of customers.”

Short term, Tenev would similar to exist dorsum in the black.

While Robinhood saw its shares jump 4.6% in afterwards-hours trading when it trounce analysts expectations, that included a net loss of $0.20 per share instead of the $0.31 estimated, Reuters said. And it posted revenue of $361 1000000 — $half-dozen 1000000 to a higher place estimates.

Yet, monthly active users missed every bit well, coming in at 12.2 meg versus thirteen.7 million expected. That’s down from 18.nine meg a year ago.

Revenues from trading in cryptocurrencies was a particularly weak area, dropping 12% to $51 million as crypto exchanges broadly have reported a big driblet-off in trading this twelvemonth. That was a result of the crypto winter acquit market, which saw non but lower prices but less of the toll volatility that powers trading. That volition play a big function in top U.S. crypto exchange Coinbase’s Q3 results, which volition exist released Thursday (Nov. 3).

Open Wallets

On the crypto front, Robinhood’s large news is the Robinhood Web3 Wallet, which it opened in beta to a limited group of 10,000 members of the i million-plus waiting list in late September.

Calling the decentralized spider web — Web3 — “the future operating arrangement of financial services,” Tenev emphasized the attending paid to safe custody and a simple and intuitive mobile experience. Merely he added, “they actually love the no gas fee” trading. Given that gas fees are imposed and nerveless by blockchains, non exchanges like Robinhood, and can be particularly high on ethereum and bitcoin, it’s an ambitious competitive movement.

While Robinhood hasn’t yet closed its acquisition of U.K. crypto exchange Ziglu, citing regulatory dubiousness, Tenev said it is one of “several pathways to international expansion, including launching our Robinhood wallet globally early next year … this will actually be our first production available to customers all over the world.”

That wallet volition see more cryptocurrencies, equally the business firm is expanding the coins it supports, admitting cautiously, he said. This included its outset stablecoin, USDC.

Trust Matters

One crypto offering that Tenev highlighted was crypto lending. Specifically, he said that Robinhood had never offered the highly assisting only risky product — which blew up in spectacular style earlier this yr when a number of lenders offering double-digit returns fell into bankruptcy, with Celsius and Voyager Digital leading the style.

“We promise that customers empathize and appreciate that we’re moving carefully, and sometimes that means moving a little fleck slower than a lot of these other crypto companies,” Tenev said pointedly. “I think this is a smashing example of edifice the trust that we were just talking near.”

Other products coming down the line include a credit card to complement its Robinhood Greenbacks Card debit card.

To encourage direct deposits, Robinhood is rolling out the power to car-invest paychecks and take “two days early pay.” But, he added, earning the trust to be “someone’s paycheck direct deposit establishment of choice is going to take time.”

Which is much the same affair he said when asked about progress winning back customers after the January 2021 GameStop stock debacle.

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How Consumers Pay Online With Stored Credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns give other customers pause. For “How Nosotros Pay Digitally: Stored Credentials Edition,” a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 U.S. consumers to analyze consumers’ dilemma and reveal how merchants can win over holdouts.

Source: https://www.pymnts.com/cryptocurrency/2022/robinhood-preps-for-launch-of-global-crypto-wallet/

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